Indiabulls Housing Finance cuts lending rates by 0.25%

Currently, the interest rate on fixed deposits above 1 year is pegged at 8.25 per cent.MUMBAI: Indiabulls Housing Finance on Tuesday said it has lowered its lending rates by 0.25 per cent to 9.60 per cent from the existing 9.85 per cent.

The new rates would be applicable from October 7 to all new home loans, the housing finance company said in a statement here.

With the new rate of interest, customers can avail home loans with EMIs starting at Rs 848 per lakh, it said.

On Monday, the country's largest mortgage lender HDFC reduced its benchmark lending rate by 0.25 per cent. The effective home loan rate for new customers will be 9.65 per cent, while for women borrowers, it will be 9.60 per cent.

The rate cut has been triggered by the Reserve Bank revising downward its benchmark short-term lending (repo) rate by 0.50 per cent in its fourth bi-monthly monetary policy review late last month.

Many banks, including State Bank of India, PNB, IDBI Bank and Bank of Baroda, Bank of India, Axis Bank and ICICI Bank, reduced their base rates after the RBI move.